Irish food-to-go firm Greencore to sell US business for €927m

Irish food-to-go supplier Greencore has clinched a deal to sell its entire US business for £817m (€927m).

The sandwich-maker said the division was being snapped up by American snacks company Hearthside Food Solutions on a cash and debt-free basis.

Greencore will hand the bulk of the proceeds - around £509m (€577m) in cash - to shareholders via a special dividend "as soon as practicable" once the deal is completed.

A further £293m (€332m) will "support a strengthened balance sheet", by helping to pay down debts.

Patrick Coveney

Chief executive Patrick Coveney said: "We believe that the proposed sale of our US operation represents a compelling and immediate realisation of value for Greencore's shareholders.

We have always had a firm conviction on the underlying value and growth prospects of our US business and believe that this offer fully reflects that.

The company said the deal will still have a "leading position in the UK market" once its US business is sold.

"Looking ahead, we are confident that we can deliver further growth and returns in the dynamic UK market," Mr Coveney said.

"The proposed transaction would enhance our strategic and financial flexibility, which would allow us to build on our industry-leading position in our core UK market whilst also taking advantage of emerging organic and inorganic growth opportunities," he added.

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